Under New Jersey law, which of the following statements correctly distinguishes the disclosure obligations of a seller's agent to the buyer versus the seller's agent's fiduciary obligations to the seller?
Correct Answer
B) A seller's agent owes the buyer only the duty to disclose known material facts about the property, while owing full fiduciary duties exclusively to the seller
Under New Jersey agency law (N.J.A.C. 11:5-6.9), a seller's agent owes full fiduciary duties—loyalty, confidentiality, obedience, disclosure, reasonable care, and accounting—exclusively to the seller. However, even a seller's agent has a duty to the buyer (a non-client) to disclose known material facts about the property that could affect the buyer's decision. This is a statutory and common law obligation to a third party, not a fiduciary duty. The seller's agent does not owe the buyer loyalty or confidentiality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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